The prices of fixed one-year energy contracts continue to fall in December, says Belgian regulator CREG.
The drop in the prices of contracts for both gas and electricity – across all suppliers – is particularly noteworthy as winter approaches, following the first weeks of significant cold.
A one-year fixed contract with the cheapest provider is now just €280 more than a variable one: €80 for electricity and €200 for gas.
In contrast, the ‘risk premium’ charged by some suppliers on fixed-price contracts was €450 just last month.
Despite the attractive fixed rates, customers seeking certainty should exercise caution. Some suppliers may request a substantial fee of up to €150, which would be forfeited in the event of a change of contract.
Furthermore, variable rates remained low in December, bucking the usual trend of rising end-of-year prices. “Wholesale markets predict considerable gas supply and stable electricity prices in Europe in the coming months,” CREG says.
